EPFO Interest Rate Set at 8.25% for FY25: What It Means for Subscribers

Government Approves EPFO Interest Rate

New Delhi: The government has confirmed an interest rate of 8.25% for the Employees' Provident Fund (EPF) for the fiscal year 2024-25. This decision allows the EPFO to distribute the annual interest earnings to over 70 million subscribers' retirement accounts.

On February 28, the EPFO decided to maintain the interest rate at 8.25%, the same as the previous fiscal year. This rate was subsequently forwarded to the Ministry of Finance for approval.

A representative from the Ministry of Labour confirmed that the Ministry of Finance has approved the 8.25% interest rate for the EPF for the upcoming fiscal year, and the labour ministry communicated this to the EPFO on Thursday.

With this approved rate, the interest will be credited to the accounts of more than seven crore EPFO subscribers.

The decision regarding the interest rate was made during the 237th meeting of the EPFO's central board of trustees, which was chaired by Union Minister for Labour & Employment, Mansukh Mandaviya, in New Delhi on February 28.

The EPF continues to provide relatively higher and stable returns compared to many fixed-income options, ensuring consistent growth for post-retirement savings.

In February 2024, the EPFO had slightly raised the interest rate to 8.25% for 2023-24, up from 8.15% in 2022-23.

Previously, in March 2022, the EPFO had reduced the interest rate for 2021-22 to an all-time low of 8.1%, down from 8.5% in 2020-21.

The 8.1% interest rate for 2020-21 was the lowest since 1977-78, when it was recorded at 8%.